BWP Trust (BWP) H1 2026 earnings summary

Executive summary

• Statutory profit after fair value movements and income tax rose 41.2% year-over-year to $221.8 million for the half-year ended 31 December 2025, driven by portfolio revaluation gains, improved leasing spreads, and internalisation of management.

• Revenue increased 3.0% year-over-year to $103.6 million.

• Interim distribution per security grew 4.1% to 9.58 cents, with FY26 guidance reaffirmed at 19.41 cents per security.

• Internalisation of management completed, ending external management by Wesfarmers and forming a stapled group structure, effective from July/August 2025.

• Strategic focus on portfolio optimisation, profitable growth, and renewal, including asset repurposing, occupancy improvement, and capital recycling.

Financial highlights

• Net tangible assets per security increased to $4.00, up 2.0% year-over-year.

• Funds from operations (FFO) rose 6% to $70.4 million; distribution payout ratio was 98.6%.

• Portfolio valuation uplift of $155.9 million, with cap rate compression to 5.27%.

• Profit before fair value movements and tax was $66.4 million, broadly flat year-over-year due to offsetting one-off transaction costs.

• Operating cash flow was $59.4 million, up from $53.0 million year-over-year.

Outlook and guidance

• FY26 total distribution per security guidance maintained at 19.41 cents, up 4.1% from FY25, subject to no major economic disruption.

• Expected capital expenditure of $60–$70 million for FY26, focused on site repurposing and tenant-led expansion.

• Most repurposing timing differences expected to be completed in the first half of FY27.

• 93 leases to be reviewed for rent increases in the second half, with three Bunnings market rent reviews pending.

• Focus remains on internalisation transition, cost of capital optimisation, and capital deployment.